Cardboard Keys, Facebook Pics, and 7-Year Debt — Congrats?

Kelley Blue Book says the average new vehicle just hit an all-time high — $51,109 — and used cars are pushing about $27,000. More than a fourth of folks are financing new rides with loans that last seven years or longer. I'm telling you, car dealers are loving this: cheesy Facebook pics, giant cardboard keys, and people signing up for payments that outlast their kids’ school days. You buy a truck when your kid starts sixth grade and you’re still paying at graduation — check-engine light on for three Christmases, still coughing up cash. They’ll charge you $299 just to look at it, $150 for an oil change, $80 for an air filter, maybe $400 because some computer sneezed, then ask if you want to trade it in for another seven-year nightmare. At least a loan shark breaks kneecaps with dignity — dealers just put you in a new loan and smile for the camera.

Takeaways:

• I point out Kelley Blue Book says average new vehicle price hit $51,109 and used cars average about $27,000.
• More than a fourth of buyers are signing up for seven-year-or-longer loans, which is straight-up mortgage territory.
• I roast dealerships for grinning on Facebook while folks end up with $900 monthly payments and 150,000-mile headaches.
• Service costs are insane: $299 diagnostic fees, $150 oil changes, and constant trade-in pitches from smiling salespeople.
• I'm exaggerating but seriously: with seven-year loans your kids or grandkids might still be paying when the car dies.